Disclaimer: Opinions expressed by our writers are their own and do not represent the views of U.Today. Financial and market information provided on U.Today is for informational purposes only. U.Today is not responsible for any financial losses incurred while trading cryptocurrencies. Please consult a financial professional and conduct your own research before making any investment decisions. All content is believed to be accurate as of the publication date, however, certain offers mentioned may no longer be available.
Federal Reserve Chairman Jerome Powell recently made some important comments that have important implications for the cryptocurrency market.
“The time has come to adjust policy,” Powell said in a highly anticipated keynote speech at the Fed's annual meeting in Jackson Hole, Wyoming. “The direction to move forward is clear, and the timing and pace of rate cuts will depend on upcoming data, the evolving outlook and the balance of risks,” Powell added.
Powell laid out the rationale for future rate cuts but did not specify the timing or magnitude of them, but he did highlight evolving inflation.
Markets expect the Fed to start cutting rates in September, but Powell gave no indication as to when he thinks the easing will begin.
Related
Minutes from the July Open Market Committee meeting published on Wednesday said a “majority” of officials believed a rate cut in September was appropriate, barring any unexpected fluctuations in data.
Cryptocurrency market reaction
Stocks rose on Friday after Federal Reserve Chairman Jerome Powell hinted at a rate cut during a speech in Jackson Hole, Wyoming, which was interpreted as a positive for risk assets.
Cryptocurrencies also rallied, with Bitcoin and most crypto assets rising in value. Markets opened higher on Friday as investors awaited a speech from the US Federal Reserve Chairman.
Related
At the time of writing, most cryptocurrencies were trending higher. Shiba Inu, Dogecoin, and Aptos were all up 3-8% in the past 24 hours, while SUI, Immutable X, and Thorchain (RUNE) were up 7-10%. Bitcoin was also up 2% in the past day, reaching $61,665 at the time of writing.
According to CME Group's FedWatch, the market is expecting a rate cut at the September meeting, but there is less agreement on the size of the cut.
